19 May Microsoft exec tells employees to improve its stock performance in lieu of raises
Office Microsoft exec tells employees to improve its stock performance in lieu of raises
Office Chris Capossela just cashed in $4.4 million worth of Microsoft stock.
By Emma Roth, a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO.
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Microsoft’s chief marketing officer has a solution for employees frustrated with the company’s decision to do away with raises: make the stock price go up.
According to a report on Wednesday from Fortune, CMO Chris Capossela wrote in a message to employees that “the most important lever for almost all our employees’ compensation upside is the stock price.” Capossela cashed out $1.55 million worth of Microsoft stock earlier this month and sold another $2.85 million last week.
“So great quarterly results contribute to making the stock attractive which in turn drives everyone’s total compensation up,” Capossela tells employees in a message viewed by Fortune. “We are still investing heavily in our people as well as in our data center capacity to hopefully position us well for the Al transformation.”
Even as Microsoft continues to pour more money into artificial intelligence and its $68.7 billion acquisition of Activision Blizzard, CEO Satya Nadella told workers last week that it won’t offer raises for salaried employees this year, citing “macroeconomic uncertainties.” He also stated that he, along with the other members of the senior leadership team, won’t get raises or performance-based bonuses, either. Microsoft also announced layoffs affecting 10,000 employees earlier this year.
In a statement to Fortune, a Microsoft spokesperson says Capossela’s “sale is part of Chris’ personal planning and does not reflect any change in his dedication to the company’s success.” Microsoft didn’t immediately respond to The Verge’s request for comment.